New IRS Information on Taxpayer First Act
The Internal Revenue Service has posted new information on its website that helps clarify the application of Section 2202 of the Taxpayer First Act (Act):
“Section 2202 of the Taxpayer First Act applies only to disclosures made by the Internal Revenue Service after December 28, 2019, and any subsequent redisclosures and uses of such information disclosed by the Internal Revenue Service after December 28, 2019.”
We encourage you to review the information on this IRS page under the topic “Limit on redisclosures of consent-based disclosures (Section 2202).”
We updated our Single-Family Seller/Servicer Guide with Guide Bulletin 2019-25 to reflect that if a signed consent form is required under the Act, a signed copy must be maintained in the mortgage file. Whether the Seller is required to obtain the consent form is based on the requirements of the Act and not on the settlement date of the mortgage.
Please review our updated FAQs related to borrower consent under the Act for additional information.
We strongly recommend consulting with your legal counsel or compliance department regarding the interpretation and application of the Act.